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COVID-19 impact to annual merit  
Posted: 03/24/2020 08:59am   220 Views
  
     

My organization will soon be beginning the annual merit process for 2020, but is considering delaying or eliminating merit increases altogether due to the financial impacts of COVID-19. Are any other organizations considering making changes to their annual merit increases? 


COVID-19 impact to annual merit  
Posted: 03/24/2020 01:17pm  
  
     

We've not yet made a decision regarding annual performance reviews and merit based pay.


COVID-19 impact to annual merit  
Posted: 03/24/2020 02:01pm  
  
     

We just completed our annual merit process right before the pandemic. However, we will most likley review and adjust the budget for the remainder of the year. 


Private11171

   
COVID-19 impact to annual merit  
Posted: 03/25/2020 07:53am  
  
     

We just completed our annual merit process and so that was not impacted. However, given the state of things I would be surprised if merit budgets didn't take a dive comparable to, if not more severe than, around 2008 with the recession.


Private15019

   
COVID-19 impact to annual merit  
Posted: 03/25/2020 06:03pm  
  
     

Go to WorldatWork COVID-19 web page and see under "Research" tab the Quick Poll results for related question "How is your organization moving forward with salary increase planning?"   https://www.worldatwork.org/resources/topics/flu-pandemic-planning-response

 


COVID-19 impact to annual merit  
Posted: 03/26/2020 08:11pm  
  
     

Looks like we have two threads on the same topic going on. I'll repost here...

Mercer has an ongoing/live survey with over 1,000 participating organizations regarding thier response to COVID-19:

https://app.keysurvey.com/reportmodule/REPORT2/report/1479157/41188187/e0176b7809e3e4e0a08ef5f21b10a2f0?Dir=&Enc_Dir=8129ead7&av=IxnIBAm77ac%3D&afterVoting=45f9106942e8&msig=b69a8d67569063f9c374d5de6672aa83


Private14299

   
COVID-19 impact to annual merit  
Posted: 04/01/2020 07:23am   Revised: 07/13/2020 06:25am  
  
     

Our fiscal year begins May 1 and in light of recent economic changes we have postponed our merit process till Q2 (August).  We are also holding on all bonus payments that would typically be paid in June until Q2.  We will determine at that time if we are able to proceed or cancel all together.  

Update:  It's mid-July and we are still on hold and will review again in Oct.  


COVID-19 impact to annual merit  
Posted: 04/01/2020 02:56pm  
  
     

Lots of good resources compiled here:  https://compensationtool.com/coronavirus-resources-for-hr-teams/

This one comes from the first mercer bullet (same as what Clayton shared)

2020 merit and covid19


#1

COVID-19 impact to annual merit  
Posted: 04/02/2020 01:12pm  
  
     

My firm is considering a COLA increase as opposed to merit, as we don't beliee we will be able to complete our performance process in a timely manner.  Does anyone know of specific eligiblity requirements for a COLA?  Meaning, if someone is on a displinary plan and would not be eligible for a merit increase, would they still receive the COLA increase, if one is given?


#2

COVID-19 impact to annual merit  
Posted: 04/03/2020 12:28pm  
  
     

We've been doing annual increases the last few years without a performance component.  Instead, it's been based entirely on range segment/placement in range (you can also do compa-ratio.  This at least helps with a budget distribution for those lower in the range.  It looks something like this:

What kind of increase is planned for FY2020 (Oct 1)?

Pay increase percentages for staff will be based on the segment of the position’s pay range that the person’s current pay rate falls within.  The position pay range is founded on the market value for the position by looking at salary survey data for our positions from several different surveys for our industry and location, and then the pay range is divided into four segments.  It will be listed on the increase notice the manager receives to communicate to the staff person.

 

Range Placement / Segment

Staff Category

Below Segment 1

S1

S2

S3

S4

Above Top Segment

Regular or Casual Staff

 (Full-Time or Part-Time)

3%

3%

2.5%

2%

1.75%

-

Staff with Position Pay   

  Changes & New Staff Hired

    On or After July 1, 2019

-

-

-

-

-

-


Private34235

   
COVID-19 impact to annual merit  
Posted: 04/05/2020 06:24pm  
  
     

question: Meaning, if someone is on a displinary plan and would not be eligible for a merit increase, would they still receive the COLA increase, if one is given?

Answer: Where I have worked, they would not be eligible for the COLA increase.


 
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